This has been an unprecedented year. Many people have found themselves out of work or working less than usual. So, you may be wondering what happens when your debt grows beyond your means to repay them. You may even be wondering if you can go to jail for not paying your bills. Does this sound like you? Maybe you have even been threatened with jail time by a debt collector.
So, Can I Go to Jail For Not Paying My Bills?
Do not let empty threats or lies of debt collectors fool you. You cannot be jailed for unpaid debts, unless those are tax or child support debts. If you have been threatened with jail time by a debt collector, you can sue them. Check with your attorney to see if you are able to sue under state law in addition to Federal law.
Remember, if you do not pay your debts, you can be sued by the creditor. If you lose that lawsuit, you will likely receive a money judgment against you. This means that your wages can be garnished.
What is a Wage Garnishment?
A wage garnishment happens after a court issues a judgment and order requiring your employer to withhold a specific amount of money from your paycheck. This money is used to pay off the debt in small installments. It is also important to note that the garnishment will show on your credit report and will affect your credit score. You should also be aware that the IRS can also garnish your wages or place a levy to recoup money owed.
How Do I Stop a Wage Garnishment?
You are able to end a wage garnishment by working directly with a creditor or filing bankruptcy. You should try to negotiate with a creditor to come up with a payment plan. Make sure that you will be able to maintain the plan. Or, you can explain to the court that you feel the garnishment should be reversed.
The idea of bankruptcy may be scary. However, in many cases, it is a great way to get a fresh start. Did you know that some debts can be completely discharged? And, those that cannot be discharged, can be greatly reduced. If you are unable to negotiate with the creditor to stop the wage garnishment, you may want to seek out a professional bankruptcy attorney to review your situation.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.